Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v2.4.0.6
Segment Information
6 Months Ended
Jun. 30, 2012
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
Segment Information
SEGMENT INFORMATION
We have four reportable segments: office, medical office, retail and multifamily. Office buildings provide office space for various types of businesses and professions. Medical office buildings provide offices and facilities for a variety of medical services. Retail centers are typically neighborhood grocery store or drug store anchored retail centers. Multifamily properties provide rental housing for individuals and families throughout the Washington metropolitan area.
We evaluate performance based upon operating income from the combined properties in each segment. Our reportable operating segments are consolidations of similar properties. GAAP requires that segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing segments’ performance. Net operating income is a key measurement of our segment profit and loss. Net operating income is defined as segment real estate rental revenue less segment real estate expenses.
The following tables present revenues and net operating income for the 2012 and 2011 Quarters and Periods from these segments, and reconciles net operating income of reportable segments to net income as reported (in thousands):
 
Quarter Ended June 30, 2012
 
Office
 
Medical Office
 
Retail
 
Multifamily
 
Corporate and Other
 
Consolidated
Real estate rental revenue
$
38,426

 
$
11,285

 
$
13,970

 
$
13,096

 
$

 
$
76,777

Real estate expenses
13,570

 
3,781

 
3,030

 
5,098

 

 
25,479

Net operating income
$
24,856

 
$
7,504

 
$
10,940

 
$
7,998

 
$

 
$
51,298

Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
(25,591
)
General and administrative
 
 
 
 
 
 
 
 
 
 
(4,164
)
Interest expense
 
 
 
 
 
 
 
 
 
 
(15,533
)
Acquisition costs
 
 
 
 
 
 
 
 
 
 
(254
)
Other income
 
 
 
 
 
 
 
 
 
 
252

Net income
 
 
 
 
 
 
 
 
 
 
6,008

Less: Net income attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
 

Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
 
 
$
6,008

Capital expenditures
$
7,278

 
$
1,148

 
$
1,154

 
$
1,486

 
$
205

 
$
11,271

Total assets
$
1,158,617

 
$
343,557

 
$
360,012

 
$
245,947

 
$
45,538

 
$
2,153,671


 
Quarter Ended June 30, 2011
 
Office
 
Medical
Office
 
Retail
 
Multifamily
 
Industrial/Flex
 
Corporate
and Other
 
Consolidated
Real estate rental revenue
$
35,219

 
$
11,519

 
$
12,237

 
$
12,709

 
$

 
$

 
$
71,684

Real estate expenses
11,902

 
3,421

 
3,619

 
4,859

 

 

 
23,801

Net operating income
$
23,317

 
$
8,098

 
$
8,618

 
$
7,850

 
$

 
$

 
$
47,883

Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
 
 
(22,526
)
General and administrative
 
 
 
 
 
 
 
 
 
 
 
 
(4,049
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(16,865
)
Acquisition costs
 
 
 
 
 
 
 
 
 
 
 
 
(322
)
Other income
 
 
 
 
 
 
 
 
 
 
 
 
310

Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
(1,173
)
Income from discontinued operations
 
 
 
 
 
 
 
 
 
 
 
 
3,298

Net income
 
 
 
 
 
 
 
 
 
 
 
 
6,556

Less: Net income attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
(34
)
Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
 
 
 
 
$
6,522

Capital expenditures
$
3,367

 
$
1,288

 
$
1,030

 
$
766

 
$
258

 
$
126

 
$
6,835

Total assets
$
991,238

 
$
352,242

 
$
308,655

 
$
236,358

 
$
223,536

 
$
75,147

 
$
2,187,176


 
Period Ended June 30, 2012
 
Office
 
Medical Office
 
Retail
 
Multifamily
 
Corporate and Other
 
Consolidated
Real estate rental revenue
$
77,056

 
$
22,712

 
$
27,415

 
$
26,093

 
$

 
$
153,276

Real estate expenses
27,464

 
7,526

 
6,472

 
10,030

 

 
51,492

Net operating income
$
49,592

 
$
15,186

 
$
20,943

 
$
16,063

 
$

 
$
101,784

Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
(51,585
)
General and administrative
 
 
 
 
 
 
 
 
 
 
(7,770
)
Interest expense
 
 
 
 
 
 
 
 
 
 
(31,428
)
Acquisition costs
 
 
 
 
 
 
 
 
 
 
(308
)
Other income
 
 
 
 
 
 
 
 
 
 
496

Net income
 
 
 
 
 
 
 
 
 
 
11,189

Less: Net income attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
 

Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
 
 
$
11,189

Capital expenditures
$
15,018

 
$
2,621

 
$
1,414

 
$
2,472

 
$
415

 
$
21,940


 
Period Ended June 30, 2011
 
Office
 
Medical
Office
 
Retail
 
Multifamily
 
Industrial/Flex
 
Corporate
and Other
 
Consolidated
Real estate rental revenue
$
68,652

 
$
22,650

 
$
24,384

 
$
25,202

 
$

 
$

 
$
140,888

Real estate expenses
23,114

 
7,090

 
7,161

 
9,687

 

 

 
47,052

Net operating income
$
45,538

 
$
15,560

 
$
17,223

 
$
15,515

 
$

 
$

 
$
93,836

Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
 
 
(44,422
)
General and administrative
 
 
 
 
 
 
 
 
 
 
 
 
(7,751
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(33,758
)
Acquisition costs
 
 
 
 
 
 
 
 
 
 
 
 
(1,971
)
Other income
 
 
 
 
 
 
 
 
 
 
 
 
616

Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
(1,173
)
Income from discontinued operations
 
 
 
 
 
 
 
 
 
 
 
 
5,867

Net income
 
 
 
 
 
 
 
 
 
 
 
 
11,244

Less: Net income attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
(57
)
Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
 
 
 
 
$
11,187

Capital expenditures
$
5,833

 
$
1,957

 
$
1,471

 
$
641

 
$
497

 
$
231

 
$
10,630